When working on estate planning, it can be very easy to make mistakes. Common errors crop up all the time, and these mistakes can cause confusion and difficulty in the future. A well prepared estate plan will protect your assets and save your loved ones a lot of time and work, while an estate plan with errors can cause quite a headache for both you and your beneficiaries. Below, are the most common estate planning mistakes.
A power of attorney is a document that gives one person the legal authorization to make decisions on someone else’s behalf. This power extends to many different business and legal matters. By executing a power of attorney, the grantor (sometimes called a donor or principal) is authorizing his or her agent to assume these legal powers. Institutions such as banks, hospitals, and the IRS require that power of attorney be done in writing.
Once you’ve created your last will and testament, you may believe you are finished with this depressing chore. However, over the years, you may find that you need to update or completely redo your will. There are a variety of things that can make this necessary, including marriage or divorce, having children, changing your beneficiaries, and/or selling or buying property. Here are some basic steps to keep in mind when changing your will.